Eli Lilly Lifts 2026 Revenue Outlook to $91 Billion-$92 Billion as Third-Quarter Sales Jump 39%

Eli Lilly raised its full-year revenue outlook by $5.5 billion at the midpoint on Thursday after third-quarter sales jumped 39% to $24.4 billion, powered by its tirzepatide drugs Mounjaro and Zepbound, according to its earnings release filed with an 8-K.

The drugmaker now expects 2026 revenue of $91 billion to $92 billion, up from $85 billion to $87 billion. Its non-GAAP earnings-per-share range moved to $35.00 to $36.00 from $35.50 to $36.50, because a $4.07 increase in underlying guidance at the midpoint was more than offset by $4.57 a share of acquired in-process research and development charges from third-quarter deals.

"Lilly had another strong quarter, exceeding our prior expectations and allowing us to raise our full-year outlook," Chair and CEO David A. Ricks said in the release.

Deal charges weigh on the bottom line

Reported EPS rose 16% to $7.22, and non-GAAP EPS rose 7% to $7.48. Both figures included $4.57 a share of acquired IPR&D charges, compared with $0.71 a year earlier, the company said.

Those charges totaled $4.2 billion in the quarter, versus $656 million a year ago, and primarily related to the acquisitions of AtaiBeckley and Curevo. Reported net income rose to $6.5 billion from $5.6 billion.

Lilly also flagged about $900 million of revenue benefits in the quarter, primarily $410 million of Jardiance milestones, with no further milestones remaining, and favorable adjustments to rebate and discount estimates.

Volume up, prices down

Revenue growth came from a 53% increase in volume, partly offset by a 15% decline in realized prices, according to the release. U.S. revenue rose 34% to $15.1 billion, while revenue outside the U.S. climbed 47% to $9.3 billion.

Lower prices outside the U.S. were driven mainly by Mounjaro's inclusion on China's National Reimbursement Drug List, the company said. In the U.S., the price decline was primarily driven by Zepbound.

Gross margin as a share of revenue rose 1.0 percentage point to 83.9%. Research and development spending increased 23% to $4.2 billion.

Mounjaro and Zepbound lead

Worldwide Mounjaro revenue grew 65% to $10.7 billion, with sales outside the U.S. up 93% to $5.7 billion. U.S. Zepbound revenue rose 48% to $5.3 billion.

Lilly's Key Products group, which includes Mounjaro, Zepbound, the oral GLP-1 Foundayo and several newer medicines, brought in $17.1 billion. Key Products revenue in immunology, oncology and neuroscience grew 100% from a year earlier, the company said.

Ricks pointed to "broad global consumer demand" for the two tirzepatide drugs, the global launches of Foundayo and expanded U.S. coverage for obesity care.

Pipeline and approvals

During the quarter, Lilly won U.S. FDA approvals including Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes and Onswik, a once-weekly basal insulin. It also reported positive topline results from a head-to-head Phase 3 trial of retatrutide versus Ozempic 2 mg in adults with type 2 diabetes.

The company completed its acquisition of AtaiBeckley during the quarter and closed its purchase of Merida Biosciences after quarter end.

By the numbers

• $24.4 billion: third-quarter revenue, up 39%
• $7.22 / $7.48: reported and non-GAAP EPS
• $4.57: per-share acquired IPR&D charges in the quarter
• $91 billion to $92 billion: new 2026 revenue guidance
• 52.0% to 52.5%: new 2026 performance margin guidance, up from 49.0% to 50.5%

Sources

1. Eli Lilly Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0000059478-26-000104)

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